Is there a reason the federal government wouldn’t want to start paying down the deficit? What are the negatives to having more money coming in than going out?
In: 5
The US government borrows at an effectively negative interest rate, so it actually makes sense to finance big spending projects and pay out less money over a longer period. Additionally, there’s not really any incentive for the US to save money each year, as doing so means either higher taxes or less spending, and no one can agree on those things. Anything the US could do with that saved money can be more easily accomplished by just borrowing the money now.
Latest Answers